Traditional methods used to test the ultimate bearing capacity of residential building steel structures are generally based on static test data and have high requirements for several of their components. However, these methods cannot measure hidden components, thus providing low-accuracy test results. Therefore, a method based on vibration parameters and dynamic model updating is proposed to predict and analyze the ultimate bearing capacity of residential building steel structures in a seismic area in this study. The relationship between vibration parameters and the ultimate bearing capacity of building steel structures was analyzed, and the simplified vibration equation was derived to determine the relationship between vibration parameters and limit load. Based on the dynamic model updating theory, the linear buckling method, geometric nonlinear method, and double nonlinear analysis method were adopted to detect the ultimate bearing capacity of residential building steel structures in an earthquake area. The experimental results show that the proposed method is effective in analyzing the hook load and load-deflection relation curve of residential building steel structures. Furthermore, the effect of numerical calculation is good, and the precision of predicted ultimate bearing capacity is high.